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How ECO4 Scheme Can Help You Save Money

ECO4 scheme

If you’re like most people, you likely want to do your part in protecting the environment and saving money at the same time. The great news is that with the latest ECO4 scheme, you can achieve both of these goals.

ECO4 is a government-backed initiative to assist low-income households to increase the energy-efficiency of their homes while simultaneously saving on their energy bills. The ECO scheme requires energy suppliers to deliver cost-effective carbon savings through energy efficiency measures like insulation, boiler replacements, and more. 

ECO4 is the final phase of the ECO scheme, so taking advantage of the cost savings while you still can is essential. This article will provide information on what the ECO4 scheme is, how it saves you money, and how to qualify for ECO4.

What is the ECO4 Scheme?

The U.K. has set a target to reduce carbon emissions to net zero by 2050. As a result, the Energy Company Obligation, or ECO, has become the pinnacle of environmental safety and conservation efforts.

With a core focus on providing energy efficiency measures to homes across the U.K., the ECO4 scheme was introduced in July of 2022 and will run through 2026. This phase of the ECO scheme is an extension of the previous ECO3 phase but with some modifications that will make the process more user-friendly (i.e. provide more energy efficiency opportunities for customers).

With the home energy grants available through the ECO4 scheme, you can improve your home’s energy efficiency at little to no cost. ECO4 will help you reduce your monthly energy bills while also funding insulation, installing heating and boiler systems, and incentivising the repair or improvement of existing systems where possible.

What You Should Know About ECO4

If you are in the U.K. struggling to make your energy payments each month, ECO4 is designed to help you with savings through energy-efficient installations at your home. 

Overall, ECO is designed to help homeowners who receive government benefits or have high fuel costs compared to their current household income. Your zip code and the existing demographics of the area are also factors in determining whether you are eligible for the grant. 

This grant provides you with the funding to get a new boiler or first-time central heating system, courtesy of the energy companies responsible for maintaining each ECO phase target as indicated by the government mandates of the scheme. Throughout ECO4, more than 450,000 homes will be upgraded to improve energy efficiency.

How ECO4 Saves You Money 

Aside from free boiler installations or new central heating systems for eligible households, with the installation of new boilers, heating systems, and insulation, homes will see dramatic savings in their household energy bills.

In 2021, more than 9,000 energy-saving measures were installed in thousands of homes across the U.K. This added up to a total savings of £103,340,191, according to UK Energy Management, and this number will continue to rise.

Factors That Affect Energy Savings

Here are a few of the factors that will determine how much money you may save with the energy grant from the ECO4 scheme.

Size and Type of Home

Energy efficiency comes down to how effectively the fuel that heats and powers your home is used. If you have a larger home, your existing energy system will burn off more fuel to provide heat and power. A smaller home, on the other hand, will require less fuel burnoff. If your system is outdated, you may benefit from a new boiler or central heating system through ECO4. 

Materials Used

Most households that qualify for the ECO energy grant will see savings over time due to the increased energy efficiency of the home provided through new insulation with upgraded materials. Installing cavity wall, under floor, and loft insulation are significant first steps to upgrading your home’s energy efficiency before replacing existing boilers or heating systems. Increasing the fabric improvements to your home will help to keep space-heating demand down to a minimum. 

Condition of the Existing Boiler and Heating System

As your boiler ages, it decreases in fuel efficiency. A typical boiler lasts around eight to ten years. Beyond that mark, most manufacturers cannot replace malfunctioning parts or fix any other issues if the boiler goes out.

Replacing your old boiler with a new one means increasing your home’s energy efficiency via fuel burnoff. An older boiler burns off more fuel to power and heat your home, while newer boilers are designed to burn off less fuel. This means less of a carbon footprint and a better EPC rating.

How to Qualify for ECO4

The goal of ECO4 is to support low-income households with the least energy-efficient homes. To qualify for assistance through ECO4, you must receive one of the following benefits.

  • Income-based Jobseekers Allowance (JSA)
  • Income Support (IS)
  • Income-related Employment & Support Allowance (ESA)
  • Credit Working Tax Credit (WTC)
  • Pension Credit Savings Credit
  • Pension Credit Guarantee
  • Universal Credit (UC)
  • Housing Benefit
  • Child Tax Credits (CTC)

ECO4 supports owner-occupied homes, social housing, and privately rented homes. For rented homes to be eligible, the tenant must receive one or more of the benefits listed above and have permission from the landlord to apply.

Choose Simply ECO, Your ECO4 Experts

If you have eligibility questions or are ready to apply for a Boiler Replacement or First-Time Central Heating grant under ECO4, Simply ECO, Ltd. can help.

Simply ECO Ltd. was established to assist people in fuel poverty to gain access to Carbon Saving and Energy Efficiency Measures. Being a Green Deal Approved Installer means working through our panel of approved funders. We can assist consumers in fuel poverty to access government grants to carry out home energy efficiency improvements and carbon reduction measures.

With over 12,000+ boilers installed since 2014, we are the largest installer of boilers in Birmingham and surrounding areas. Contact us to get started on reducing your heating bills today.

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